Lallemand And Braskem Unlock New Ethanol Revenue Stream

Lallemand Biofuels & Distilled Spirits and Braskem launched a new bio-acetone platform for corn ethanol plants. The technology lets producers create a second product without slowing ethanol output. It taps a global acetone market worth more than 8 million tons a year, giving ethanol producers a fresh income stream.

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What Is Bio-Acetone, And Why Does It Matter For Ethanol Plants?

Lallemand Biofuels & Distilled Spirits and Braskem unveiled their joint bio-acetone platform on July 28, 2026. Bio-acetone is a renewable version of a widely used industrial solvent. The announcement came from offices in Montreal and Philadelphia.

Braskem ranks as the largest polyolefins producer in the Americas. The company also leads global biopolymer production at industrial scale. Lallemand Biofuels & Distilled Spirits, based in Milwaukee, Wisconsin, is a business unit of Lallemand Inc., a Canadian yeast and bacteria producer.

Ethanol plants normally rely on one dominant product, fuel ethanol. This new platform adds a second revenue line. Producers do not need new construction or major process changes to participate.

How Does The Bio-Acetone Production Process Actually Work?

Lallemand engineered a specialized yeast strain for this platform. The yeast produces bio-acetone during normal ethanol fermentation. It does this without reducing ethanol output, according to the companies.

Braskem then applies a bolt-on separation system after fermentation ends. This equipment recovers bio-acetone from the ethanol stream. Braskem also manages all sales, marketing, and customer relationships for the resulting product.

The two companies spent 5 years developing and validating this process before launch. That timeline reflects careful engineering work. It also explains why the announcement includes a ready customer base rather than just a lab concept.

Why Are Ethanol Producers Looking Beyond Fuel Revenue?

Nearly 200 U.S. biorefineries produce ethanol today, with a combined capacity of 18.5 billion gallons a year, according to the Renewable Fuels Association's 2026 outlook. Ethanol prices move with corn costs, gasoline demand, and federal policy.

A second, steadier revenue stream reduces exposure to that volatility. Bio-acetone taps into a market worth more than 8 million tons of demand every year. That scale gives ethanol producers access to an established buyer base.

Some producers already pursue other diversification paths. Tallgrass Energy built carbon transport infrastructure connecting Midwest ethanol plants to permanent storage.

Red Trail Energy in North Dakota became the first ethanol plant to enter the voluntary carbon markets. Updated rules also opened a carbon credit market to biogenic sources like ethanol fermentation.

Craig Ammann, Vice President of Business Development at LBDS, said the company constantly looks for ways to boost ethanol producer profitability.

What Can Bio-Acetone Actually Be Used For?

Bio-acetone works as a drop-in replacement for fossil-based acetone. It fits directly into existing manufacturing processes without new equipment. Several established industries already use standard acetone at scale.

• Paints and coatings
• Adhesives
• Acrylics
• Cosmetics and personal care products

Cirilo Vieira, Business Development Director for Renewables & Biochemicals at Braskem, credited the combined expertise for the platform's success.

The renewable version is fully bio-based, according to Braskem. It is also free of benzene and phenol, two compounds common in conventional acetone. Braskem verifies the renewable content through a C14 test, a radiocarbon method that confirms modern biological origin rather than fossil origin.

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The Next Coproduct Race Is Already Underway

Five years of joint testing preceded this bio-acetone launch, giving it a stronger foundation than many new coproduct ideas. This partnership shows ethanol plants have more than one path to new revenue. Coproduct diversification now joins carbon capture as a serious strategy.

Braskem already turns sugarcane ethanol into bio-based plastics in Brazil. The company detailed those results in its own life cycle assessments for its bio-based portfolio.

Braskem joined MIT's Energy Initiative in 2022 to support broader energy transition research. Its renewable, ethanol-based polyethylene program even drew coverage on international television.

Comstock Fuels pursues a similar coproduct strategy for renewable fuels. The company licenses a catalytic process detailed in coverage of its biorefinery coproduct technology.

Hawaii's Par Pacific took a related approach this year. It added sustainable aviation fuel production at its Kapolei biorefinery.

Lallemand brings its own scale to this partnership. The company employs more than 6,300 people across over 50 countries, according to its own figures. Braskem employs nearly 8,000 people worldwide, per the companies' joint announcement.

Bio-acetone adds one more credible option to that growing list. Expect more ethanol producers to explore coproduct partnerships like this one in the months ahead.

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